The Chart of Accounts

question 31

Multiple Choice

The chart of accounts

• A) is a numbered list of all of the business' accounts.
• B) allows accounts to be balanced more accurately.
• C) can be expanded as the business grows.
• D) A and C are correct.

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Definitions:

Insurance Premium

The amount paid periodically to an insurance company for coverage.

Plant Asset

Long-term tangible assets used in the production of goods or services, such as machinery, buildings, and equipment.

Net Income

The total earnings calculated by subtracting total expenses from total revenues, indicating the company's profit.

Invoice Cost

Invoice cost refers to the amount shown on the invoice from a supplier, including the cost of the goods purchased and any additional fees or shipping costs.